Personally I'm having trouble understanding my people are so upset, though I will admit I'm a bit of a late comer so not 100% sure on how exactly things were before. The devs said the local storage system is still there and can come into play for things like sieges. But overall it just frees the player up from having to worrying about making sure they ship X units of Iron to Y City which is training Knights. So all the micromanagement details are simply under the hood.
The only other possible issue is travel time so it takes say 3 turns for X units of Iron to reach Y City from the city that mined it. Though if someone is really concerned with travel times and local storages then perhaps the Settlers 7 is a game they'd enjoy. There you have all kinds of local resources which are automatically moved around for the players.
I'm not advocated the game become more like Settlers 7 as the travel time for resources can get annoying. You'd end up with shortages such as the bakery can't make bread because the flour from the mill hasn't arrived even though your global surplus of flour is really high. Which is fine because that game is almost entirely about managing your economy and supply routes. Combat, R&D, and etc are fairly dumbed down in S7. But even though the stuff is very much local the global totals are shown at the top just like in Elemental. Though unlike Elemental you have to keep an eye on supply routes and such to make sure goods are flowing correctly. I don't really see the addition of this type of mechanic to Elemental as being all that helpful, fun, or interesting.
Plus it doesn't really fit that well into the scope of Elemental which is suppose to be a 4X game not a trade management sim. It may seem easy and manageable on the small maps given in the beta. But remember the supposed largest map in Elemental will be over 5 times the size of Civ 4's Huge map. I can't imagine hassle of trying to managing the resources on a city level with a map the size of Civ 4's Huge map let alone one that's 5 times the size. You'd end up spending all your time looking at charts and trade route layouts every turn. Now some people like that kind of thing but again that's not the kind of game the devs are going for.
If we REALLY hated the idea of a city-based localc storage economy we'd clean up the engine and rip that stuff out. Obviously we can understand the appeal (hell, it's what we originally wanted), but like most things that sound great on paper, it just felt too bloated when put into context.
True, but also like most things it comes down to implementation. As the general idea maybe sound but it's execution is off, which is what happens a lot of times with improvements in game's sequals as things are refined. Keeping the system and hiding a lot of the mechanics behind the scenes I think is a good move.
Again I don't know what the pure local setup was like before so I can't quite comment on it. Even so I think having it so the player doesn't need to worry about making sure they move resource X to city Y is a good thing since it cuts down on teadous micromanagement which should be automatic. I mean if the player wants to build something that uses X then of course they are gonna want to ship X to that location there is no point in making them manually move it.
And there is no point in punishing them with travel times if they forgot to plan 10 turns in advance that they would build A, B, and C where C won't start for 12 turns and it's the item that needs X resource from a city that will take 10 turns to ship the goods from. That's just a headache and I think it's the right move not making the player have to worry over that.